This post appears as part of Goldstein Law Group’s blog series for International Fraud Awareness Week (November 16-22). This week, GLG attorneys address five types of insurance fraud the firm encounters on a regular basis.
One of the most popular fraud schemes among non-professional crooks is to report their cars missing. Although most perpetrators committing this type of fraud are not professionals, they are incredibly creative.
Individuals will create a fake vehicle title or registration for a nonexistent antique or luxury car, report the car stolen, and then file a claim. A Seattle man recently was indicted for reporting two different vehicles stolen and claiming each as a loss with his insurance company. Investigators determined both vehicles actually had been shipped to Liberia. Other fraudsters avoid shipping fees by just dumping their vehicle in a lake or setting it on fire.
These scams cost the public billions of dollars annually. Unfortunately, they’ve become more prevalent as people resort to desperate measures to bring in cash.
Working side-by-side with insurance companies, GLG’s staff has become adept at identifying suspicious claims. Often certain recurring indicators will raise red flags, such as claimants who increase their insurance right before a car is “stolen” or repeatedly file claims. Through the use of social media and shared databases between insurance companies, we also have increased our success rate.
Did you know an arrest for false auto theft claims can result in a felony conviction if destruction of property is involved? A felony conviction certainly is a high price to pay for the possibility of obtaining such an unlawful financial reward. Knowledge of this potential consequence alone deters most people; however, many fraudsters still think it’s worth the gamble.
That’s why Goldstein Law Group is on your side.
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